Positioning Your Business Exit

Positioning Your Business Exit

Who should be on my team when I sell?/What people will I need to sell?

What can I do to prepare my business for sale?

How do you put a value on your business’ worth?/How will you work out the value of my business?

A business is often an owner’s largest asset, but an exit strategy is a little more complex than the sale of your other large asset, your
home. Most people understand the process of selling a property but few understand the implications of how to sell a business. Switch Business
wants to change this.

Going forward we would like to work with business owners, their families and professionals at least a year before they might want to sell their
business, to help them understand and accept the processes involved, and have their business ready for a sale/new owner.

Targeted, Personalised and Company Specific

All business categories have drivers, KPIs and market ratios etc. that discerning buyers are looking to identify. With our many years of experience
we have built up a knowledge base of these areas that need to be identified and corrected in any business before it goes to the market. This
process is designed to maximise the value of your business and create an attractive opportunity for when you’re ready to sell.

It appears to me that the disciplines any business should follow to make their business more saleable, are likely to be the very disciplines required
to make the business successful. Areas that hinder any business sale generally have something to do with the risk on the future maintainable
income. Mitigating any risk to the current or future income of the business should be equally important to the current or future owner of the
business.

The ability of any business to be able to verify any and/or all representations made about the business is paramount to achieving the best possible
result in any business sale. So a new owner of the business needs to begin preparing for a future sale from the day he/she takes over. We can
advise what records you will need to properly extract the best possible result when you look to sell in the future.

SBL will look to work in with your existing professional advisors where possible. Your accountant and legal advisors often are unable to help identify
how to position the overall business for sale but can be a big help ensuring that the areas they are qualified for appear as transparent as
possible.

Switch Business Offering

SBL will charge an annual retainer paid monthly and should you as the business owner decide to have SBL sell the business at the end of the mentoring
process (you do have a choice) we will reduce the commission structure to take into account the retainer paid on the way through.

The process is certainly not a ‘one size fits all businesses’. We have developed a program that initially begins with ‘category
specific’ areas to measure and evaluate, and these help highlight initial areas that need to be addressed. We then move on to measure
areas that are business and owner specific. The five stages are as follows:

Appraise Fair market Value (FMV) of the business ‘as is’ to give you an idea of where the business sits today.

Measure and evaluate areas that impact the value of the business.

Agree to a plan to improve said areas in a set time period.

Implement the plan, agree to measurement timeframes and processes and adjust as/when required.

Reach targeted goals/KPIs and then appraise for FMV to begin exit strategy.

SBL will be fully engaged throughout this process with staff producing the reports we require to measure the business’ progress. It is envisioned
that we will have at least one meeting per month, numerous phone calls and preparation hours spent analysing progress made.

Costs

Costs are $12,000 +GST per annum - to be paid monthly ($1000 +GST per month)

Should you decide to utilise SBL as the broker for sale of the business, commission rate will be reduced by 40% from normal rates. (currently at
time of writing commission rate is 8.9% + GST and commission would re reduced to 5% + GST).

If you're interested in discussing this new service offering feel free to contact us for
an obligation free chat.